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lavanya (student)     21 February 2014

Capital gain tax


 I  have a query:

1) My client  has sold a plot for Rs.40 Lakhs  in June,2010.He had invested the total considetation in Capital gain account scheme and claimed Exempltion u/s 54F. But  he has failed to purchase  another HP in 3 years and time limit of 3 years was completed in June,2013.

I Want to know whether CG tax on 40 Lakhs is to be paid immediately or before the filling of return for  F Y 2013-14.Is there any interest/penalty for it.

 2) He had tried to buy another HP in this 3 years and given advance for the same.Lateron the agreement was cancelled due to some reasons.In this case, can he able to get any exemption if he shows the proof of agreement and advance given.

3)He has another plan to buy HP till the completion of this Financial Year.If he buys it, is there any possibility to get exemption.

Kindly suggest me in this regard.


 4 Replies


Binod (Student CA Final )     21 February 2014

Hello, friends


In case, the assessee deposits the amount in the Capital Gains Account Scheme but does not utilise the amount
deposited for the purchase or construction of a residential house within the specified period, the amount not so utilised
shall be charged as Capital Gains of the year in which the period of 3 years from the date of sale of the Original Asset
and it will be long term capital gain of that financial year.


CA. Kuldeep Singhi

CA. Kuldeep Singhi (Entrepreneur)     21 February 2014

Capital gain tax should be paid considering the advance tax installment as per assessee & i don't think he will get any exemption for advance payment made & neither he will be allowed further time.


Mihir (Wealth Manager)     21 February 2014

Compute the capital gains. Tax shall be on the long term capital gains and not on the full sale consideration.

lavanya (student)     24 February 2014

Thanks all for your information.

For  calculation of interest which date/FY  i should consider?


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